Managing money is a lot more than just juggling dollars and cents, say Jeff Shaver.
In an economy with as many undulations as the current one, it’s also about managing emotions and expectations, said Jeff Shaver, co-founder, principal and managing partner of Atlanta Capital Group. Atlanta Capital helps manage the finances of clients ranging from endowments to people with high net worth.
Shaver and his partners at Atlanta Capital formed the company in 2002 and have since made eight acquisitions. Atlanta Capital now has more than $650 million in assets under advisement.
The Rochester, N.Y., native credited his firm’s “team approach” in navigating clients through uncertain times. Communication with clients, he said, is key.
Shaver sat down recently with The Atlanta Journal-Constitution to talk about the economy and the mindset of investors.
Q: What are the common questions you see across the board from clients?
A: We send out a weekly email. ... It keeps clients up to speed about what’s going on. It’s been going out almost every day because of the turmoil, keeping everyone abreast of what’s going on, what’s affecting their portfolio.”
We get the calls [from clients asking]: “What is Obama going to do?” “What’s next year going bring?” “The election?”
We don’t invest on what’s going to happen in the future, we invest on what’s happening now. What the economy is giving us now. Because we [handle] discretionary dollars, we can move very quickly. That’s imperative.
Q: Are you a manager of expectations as much as you are a manager of money? How do you manage client expectations and client fears?
A: We do that from the moment we meet the client. We don’t overshoot expectations. We don’t sell a client on coming over by telling them they won’t lose money. That’s impossible. We are proactive and we manage expectations. The worst thing to happen is to tell the client to expect 10 percent returns every year. That’s not going to happen. That’s not reality. We keep them informed and let them know what’s happening.
Q: What are the biggest factors weighing on the economy?
A: You have [potential Federal Reserve actions], you have government printing money like it’s nothing. ... Jobs. Employment is huge. Housing. Until housing corrects, it’s tough to say we’re going to have an upward market. And we don’t even know if the housing market has gone through its full cycle yet. We don’t think that it has, but that remains to be seen.
Q: What, if anything, can Washington do to calm the markets right now?
A: Unless they can produce jobs, you can’t continue to throw money at the problem and hope that it works.
Q: You have a lot of small business owners as clients. What is the level of confidence among your clients who are small business owners?
A: It was starting to get extremely positive about eight months ago. Now it’s starting to slow down a little bit with the market [swings]. The fact is when the markets are going up, everybody is positive, they feel positive and everything is fine. Small business owners now are cautiously optimistic. It depends on which firms we’re dealing with. Business owners are wondering how [the recovery] is going to be sustained.
Q: Small businesses for years have been the so-called engine of the economy. What does it take for them to start hiring again?
A: Literally, we think it’s a cyclical situation. It’s a Catch-22, if you’re not selling your widget, you’re not going to hire. If you’re not growing your company, you’re not going to hire. If government continues to tax as heavily as they do, for small businesses it’s an incentive not to grow.
Q: Do you see a double-dip recession?
A: I don’t think it’s going to happen. But it could. If it does we will obviously be proactive on it.
Meet Jeff Shaver
Job title: Co-founder, principal, managing partner Atlanta Capital Group
Age: 41
Hometown: Rochester, N.Y.
Current residence: Buckhead
Family: Wife, Jeannie; sons, Sennett, 5, and Preston, 2; and daughter, Harper, 2 months.
Education: Bachelors of science in health and human services with a minor in economics University of Buffalo in Buffalo, N.Y.
Hobbies: “Golf and watching my 5-year-old playing sports.”
Favorite philanthropy: ALS Association, Golden Retriever Rescue
What you’re reading now: The Supernova Advisor by Robert Knapp
Favorite travel destination: Antigua in the West Indies
Favorite smart phone or iPad app: Business Model Toolbox
Favorite thing about Atlanta: Southern hospitality
